Investment in infrastructure and new delivery options to lay foundation for global e-commerce leadership in fastest-growing logistics sector

SINGAPORE and MUMBAI, Aug. 26, 2014 /PRNewswire/ — Deutsche Post DHL, the world’s leading mail and logistics group, has chosen India to pilot the development of its e-commerce business model for Asia-Pacific. Through its subsidiary Blue Dart Express, already a national leader in door-to-door delivery, DPDHL ‘s business unit DHL eCommerce is investing in infrastructure and the development of fulfillment centers, multiple delivery and payment options as part of its aim to become the preferred global provider of e-commerce related services including e-fulfillment and e-facilitation.

Frank Appel, CEO, DPDHL, said: "Globally, e-retail is rapidly evolving. Over the next five years, the global e-commerce sector is expected to grow by more than 10 per cent per annum with Asia Pacific leading the way. This region is expected to soon surpass North America and Europe as the biggest online market in the world. As the leading logistics company with an unsurpassed global footprint, there’s a huge opportunity for us to become the world’s leading provider of e-commerce logistics and we have a ready solutions infrastructure in India to pilot our solutions."

Blue Dart Express is well positioned to pilot e-commerce in India and models for Asia Pacific. The leader in door-to-door delivery solutions and South Asia’s premier express air and integrated transportation and distribution company, Blue Dart services over 34,154 locations in India.

Investing in infrastructure and new delivery options

By 2025, e-commerce share of overall trade volume of emerging markets will be up to 30 percent (40 percent in developed countries), according DPDHL’s report ‘Global E-Tailing 2025′[1].

Malcolm Monteiro, CEO, DHL eCommerce Asia Pacific said: "With 250 million Internet users, Indian e-commerce remains underdeveloped, with online shopping valued at EUR 2.3 billion in 2013. This is expected to grow to EUR 4.1 billion by 2018, a CAGR of 12.3 per cent in 5 years[2]. All countries across Asia are in different evolutionary stages when it comes to e-commerce. We need to adapt our service portfolio within the region accordingly."

In India, DHL eCommerce, working closely through Blue Dart will invest in developing multiple delivery options and cash on delivery capabilities. These two key needs were identified by India’s top online shoppers – male, high-income, young urbanites – as part of a 20-country consumer survey on international distance selling ‘Shop the World’, carried out by DHL eCommerce to provide a deeper understanding of the home shoppers’ journey.

Anil Khanna, Managing Director of Blue Dart Express Ltd, said: "Blue Dart’s unrivaled domestic delivery system and network capabilities in India provide the perfect base for piloting the development of region wide e-commerce solutions. We are working closely with leading brands, market place sellers and retailers to help them establish a sustainable e-commerce footprint. That’s why we are investing in the right infrastructure – including IT – to build the right model for consumers and sellers."

Tapping India’s eCommerce potential with India-specific insights

According to ‘Shop the World’, online purchases in India are limited largely to consumer electronics, fashion and media products with shopping by smart phone the norm. Indians’ main reasons for online shopping are overcoming geographical restrictions on choice and unlimited shopping hours — although the biggest negative was unknown quality of online products. E-shoppers in India revealed delivery expectations that were higher than the global average. Despite the country’s size, Indian shoppers expect delivery within 5 days (global average 6.5 days), parcel tracking options and free delivery. The average rate of return of goods also scored higher than the global average at 29.5 per cent with poor quality or defects the number one reason for returns.

The survey also identified growth opportunities in the development of online payment systems — cash on delivery or cards being India’s top payment choice — and in international sales. The majority of Indian e-commerce is domestic with only a third of consumers having ordered overseas. This is set to grow with more than half planning to place an international online order with US being the number one target market.

DHL is the global market leader in the logistics and CEP industry and "The logistics company for the world". DHL commits its expertise in international express, national and international parcel delivery, air and ocean freight, road and rail transportation as well as contract and e-commerce related solutions along the entire supply chain. A global network composed of more than 220 countries and territories and around 315,000 employees worldwide offers customers superior service quality and local knowledge to satisfy their supply chain requirements. DHL accepts its social responsibility by supporting environmental protection, disaster management and education.

DHL is part of Deutsche Post DHL. The Group generated revenues of more than 55 billion euros in 2013.

Blue Dart Express Ltd.

Blue Dart Express Ltd., South Asia’s premier express air and integrated transportation & distribution company, offers secure and reliable delivery of consignments to over 34,236 locations in India. As part of the DP DHL Group (DHL Express, DHL Global Forwarding & DHL Supply Chain), Blue Dart accesses the largest and most comprehensive express and logistics network worldwide, covering over 220 countries and territories and offers an entire spectrum of distribution services including air express, freight forwarding, supply chain solutions and customs clearance.

The Blue Dart team drives market leadership through its motivated people force, dedicated air and ground capacity, cutting-edge technology, wide range of innovative, vertical specific products and value-added services to deliver unmatched standards of service quality to its customers. Blue Dart’s market leadership is further validated by numerous awards and recognitions from customers for exhibiting reliability, superior brand experience and sustainability. Some of these include Superbrand and ‘Reader’s Digest Most Trusted Brand Award’, one of ‘India’s Best Companies to Work For’ by The Great Place to Work® Institute five times in a row, ‘Outstanding Contribution to the Cause of Education’ – Global HR Excellence Awards 2011-2012, BSE Best CSR Practice Award and 22nd CFBP Jamnalal Bajaj Fair Business Practices Award – 2010 in the category of Service Enterprises (Medium) to name a few.

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